Basilea Pharmaceutica - Multiple catalysts on the horizon

Basilea has provided an update on the three ongoing derazantinib Phase II trials (FIDES-01/02/03) that will define its utility in iCCA (bile duct cancer), urothelial cancer (UC) and gastric cancer (GC). Importantly, updated data from the open-label FIDES-01 study confirm encouraging efficacy in iCCA patients with FGFR2 gene fusions. Derazantinib’s value lies in its unique MOA (FGFR inhibition plus CSF1R activity) and favourable safety profile, which suggests it could enable synergies with other therapies. While we forecast its first route to market in 2023 in iCCA, multiple data readouts expected in 2021/22 from FIDES-02 (UC) and FIDES-03 (GC) will determine combination strategies and its potential differentiation from the competition. We maintain our valuation of CHF1.17bn or CHF99 per share.